Cyprus Real Estate Market Soars – Rising Rental Prices Boost Investor Interest

The Cypriot real estate market has seen a significant surge in rental prices across all property types during the second quarter of 2023, as per a report released by Ask Wire, a tech-informed real estate company based in Cyprus. The report analysed both property sales and rental cost fluctuations, shedding light on the current market trends. 

According to Ask Wire CEO, Pavlos Loizou, the rising trend in property values and rental rates since the second quarter of 2022 shows no signs of slowing down. The cities of Limassol, Paphos, and Larnaca have witnessed a remarkable increase in prices for both apartments and houses, contributing to the overall market growth. 

Despite the surge in prices and rents, the real estate market in Cyprus has managed to establish a stable threshold. The blend of increased interest rates and higher prices has created a robust market, offering stability to both investors and buyers. 

On an annual basis, sales prices for apartments increased by 12.2%, houses by 4.6%, and offices by 4.4% across Cyprus. Additionally, retail spaces saw a rise of 1.2%, holiday apartments by 8.8%, and holiday houses by 3.7%. 

Rental values have also experienced substantial growth compared to the second quarter of 2022. Apartments witnessed a significant 17.9% increase, houses by 13.6%, and retail spaces by 6.8%. Warehouses and offices saw an increase of 1% and 10.8% respectively, while holiday apartments and houses recorded growth of 16.5% and 13.9% respectively. 

Looking ahead to the third quarter of 2023, experts predict that residential property prices will remain fairly steady, despite potentially slower demand and reduced transaction volume. Economic conditions, supply, and demand dynamics are expected to influence the residential sector’s future growth. 

Despite the possibility of a slowdown in demand, Cyprus continues to attract both local and overseas investors due to the rising rental values across different property types. The island’s charm, coupled with its thriving real estate market, makes it an attractive destination for those seeking lucrative investment opportunities. 

The Cyprus real estate market’s impressive growth in rental prices indicates a flourishing industry with great potential for investors. As the market remains steady, both local and overseas investors are likely to continue finding the island an appealing destination for property investment. With the Ask Wire Index offering comprehensive insights, stakeholders can stay informed about long-term trends and make well-informed decisions in the dynamic Cyprus real estate market. 

Source: Cyprus Mail 

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